Southwestern Energy Company (NYSE: SWN) today announced
financial and operating results for the second quarter ended June
30, 2024.
- Generated $291 million net cash provided by operating
activities, $608 million net loss, $113 million adjusted net income
(non-GAAP), and adjusted EBITDA (non-GAAP) of $413 million
- Reported total net production of 379 Bcfe, or 4.2 Bcfe per day,
including 3.6 Bcf per day of gas and 101 MBbls per day of
liquids
- Invested $430 million of capital and placed 22 wells to sales,
including 19 in Appalachia and 3 in Haynesville
- Proactively adjusting activity in response to commodity prices
while optimizing productive capacity within annual cash flow
Financial Results
For the three months ended
For the six months ended
June 30,
June 30,
(in millions)
2024
2023
2024
2023
Net income (loss)
$
(608
)
$
231
$
(2,143
)
$
2,170
Adjusted net income (non-GAAP)
$
113
$
95
$
244
$
441
Diluted earnings (loss) per share
$
(0.55
)
$
0.21
$
(1.94
)
$
1.97
Adjusted diluted earnings per share
(non-GAAP)
$
0.10
$
0.09
$
0.22
$
0.40
Adjusted EBITDA (non-GAAP)
$
413
$
484
$
885
$
1,283
Net cash provided by operating
activities
$
291
$
425
$
787
$
1,562
Net cash flow (non-GAAP)
$
378
$
453
$
817
$
1,217
Total capital investments (1)
$
430
$
595
$
968
$
1,260
Free cash flow (deficit) (non-GAAP)
$
(52
)
$
(142
)
$
(151
)
$
(43
)
(1)
Capital investments include decreases of $31 million and $22
million for the three months ended June 30, 2024 and 2023,
respectively, and decreases of $17 million and $28 million for the
six months ended June 30, 2024 and 2023, respectively, relating to
the change in capital accruals between periods.
For the quarter ended June 30, 2024, Southwestern Energy
recorded a net loss of $608 million, or ($0.55) per diluted share.
Adjusting for the impact of the Company’s full cost ceiling test
impairment and other one-time items, adjusted net income (non-GAAP)
was $113 million, or $0.10 per diluted share, and adjusted EBITDA
(non-GAAP) was $413 million. Net cash provided by operating
activities was $291 million, net cash flow (non-GAAP) was $378
million and total capital investments were $430 million.
As of June 30, 2024, Southwestern Energy had total debt of $4.2
billion and net debt to adjusted EBITDA (non-GAAP) of 2.1x. At the
end of the quarter, the Company had $445 million of borrowings
under its revolving credit facility and no outstanding letters of
credit.
As indicated in the table below, second quarter 2024 weighted
average realized price was $1.70 per Mcfe, excluding the impact of
derivatives and net of $0.29 per Mcfe of transportation expenses.
Including derivatives, weighted average realized price for the
second quarter was up from $2.33 per Mcfe in 2023 to $2.35 per Mcfe
in 2024 primarily due to an increase in liquids prices.
Realized Prices
For the three months ended
For the six months ended
(includes transportation costs)
June 30,
June 30,
2024
2023
2024
2023
Natural Gas Price:
NYMEX Henry Hub price ($/MMBtu) (1)
$
1.89
$
2.10
$
2.07
$
2.76
Discount to NYMEX (2)
(0.67
)
(0.63
)
(0.58
)
(0.43
)
Average realized gas price, excluding
derivatives ($/Mcf)
$
1.22
$
1.47
$
1.49
$
2.33
Loss on settled financial basis
derivatives ($/Mcf)
(0.02
)
(0.02
)
(0.02
)
(0.05
)
Gain on settled commodity derivatives
($/Mcf)
0.80
0.57
0.65
0.17
Average realized gas price, including
derivatives ($/Mcf)
$
2.00
$
2.02
$
2.12
$
2.45
Oil Price:
WTI oil price ($/Bbl) (3)
$
80.57
$
73.78
$
78.76
$
74.96
Discount to WTI (4)
(10.43
)
(10.58
)
(10.63
)
(10.41
)
Average realized oil price, excluding
derivatives ($/Bbl)
$
70.14
$
63.20
$
68.13
$
64.55
Average realized oil price, including
derivatives ($/Bbl)
$
66.67
$
56.82
$
64.90
$
57.49
NGL Price:
Average realized NGL price, excluding
derivatives ($/Bbl)
$
20.06
$
18.63
$
21.89
$
21.51
Average realized NGL price, including
derivatives ($/Bbl)
$
20.41
$
20.85
$
22.01
$
22.71
Percentage of WTI, excluding
derivatives
25
%
25
%
28
%
29
%
Total Weighted Average Realized
Price:
Excluding derivatives ($/Mcfe)
$
1.70
$
1.84
$
1.94
$
2.65
Including derivatives ($/Mcfe)
$
2.35
$
2.33
$
2.48
$
2.75
(1)
Based on last day settlement prices from
monthly futures contracts.
(2)
This discount includes a basis
differential, a heating content adjustment, physical basis sales,
third-party transportation charges and fuel charges, and excludes
financial basis derivatives.
(3)
Based on the average daily settlement
price of the nearby month futures contract over the
period.
(4)
This discount primarily includes location
and quality adjustments.
Operational Results Total net production for the quarter
ended June 30, 2024 was 379 Bcfe, of which 85% was natural gas, 13%
NGLs and 2% oil. Capital investments totaled $430 million for the
second quarter of 2024 with 30 wells drilled, 23 wells completed
and 22 wells placed to sales.
For the three months ended
For the six months ended
June 30,
June 30,
2024
2023
2024
2023
Production
Natural gas production (Bcf)
324
365
649
718
Oil production (MBbls)
1,261
1,441
2,492
2,859
NGL production (MBbls)
7,908
8,247
15,169
16,487
Total production (Bcfe)
379
423
755
834
Average unit costs per Mcfe
Lease operating expenses (1)
$
1.08
$
1.00
$
1.10
$
1.03
General & administrative expenses
(2)
$
0.11
$
0.09
$
0.12
$
0.09
Taxes, other than income taxes
$
0.11
$
0.14
$
0.12
$
0.15
Full cost pool amortization
$
0.58
$
0.77
$
0.63
$
0.76
(1)
Includes post-production costs such as
gathering, processing, fractionation and compression.
(2)
Excludes $10 million and $19 million in
merger-related expenses for the three and six months ended June 30,
2024, respectively.
Appalachia – In the second quarter, total production was
247 Bcfe, with NGL production of 87 MBbls per day and oil
production of 14 MBbls per day. The Company drilled 16 wells,
completed 15 wells and placed 19 wells to sales with an average
lateral length of 16,596 feet and average well cost of $922 per
lateral foot.
Haynesville – In the second quarter, total production was
132 Bcf. There were 14 wells drilled, 8 wells completed and 3 wells
placed to sales in the quarter with an average lateral length of
8,348 feet and average well cost of $1,788 per lateral foot.
E&P Division Results
For the three months ended
June 30, 2024
For the six months ended
June 30, 2024
Appalachia
Haynesville
Appalachia
Haynesville
Natural gas production (Bcf)
192
132
379
270
Liquids production
Oil (MBbls)
1,256
5
2,482
10
NGL (MBbls)
7,908
—
15,168
1
Production (Bcfe)
247
132
485
270
Capital investments (in
millions)
Drilling and completions, including
workovers
$
163
$
188
$
361
$
420
Land acquisition and other
22
1
68
2
Capitalized interest and expense
31
17
66
37
Total capital investments
$
216
$
206
$
495
$
459
Gross operated well activity
summary
Drilled
16
14
31
28
Completed
15
8
30
20
Wells to sales
19
3
25
15
Total weighted average realized price
per Mcfe, excluding derivatives
$
1.71
$
1.66
$
2.02
$
1.81
Wells to sales summary
For the three months ended
June 30, 2024
Gross wells to sales
Average lateral length
Appalachia
Super Rich Marcellus
6
16,426
Rich Marcellus
4
14,241
Dry Gas Utica(1)
6
20,184
Dry Gas Marcellus
3
12,898
Haynesville
3
8,348
Total
22
(1)
Ohio Utica
Guidance Due to the pending merger with Chesapeake Energy
Corporation (“Chesapeake”), Southwestern Energy has discontinued
providing guidance. Accordingly, investors are cautioned not to
rely on historical forward-looking statements as those
forward-looking statements were the estimates of management only as
of the date provided and were subject to the specific risks and
uncertainties that accompanied such forward-looking statements.
Conference Call Due to the pending merger with
Chesapeake, Southwestern Energy will not host a conference call or
webcast to discuss second quarter 2024 results.
About Southwestern Energy Southwestern Energy Company
(NYSE: SWN) is a leading U.S. producer and marketer of natural gas
and natural gas liquids focused on responsibly developing
large-scale energy assets in the nation’s most prolific shale gas
basins. The Company’s returns-driven strategy strives to create
sustainable value for its stakeholders by leveraging its scale,
financial strength and operational execution. For additional
information, please visit www.swn.com and www.swncrreport.com.
Forward Looking Statement This news release contains
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Exchange Act of 1934, as amended. These statements are based on
current expectations. The words “anticipate,” “intend,” “plan,”
“project,” “estimate,” “continue,” “potential,” “should,” “could,”
“may,” “will,” “objective,” “guidance,” “outlook,” “effort,”
“expect,” “believe,” “predict,” “budget,” “projection,” “goal,”
“forecast,” “model,” “target”, “seek”, “strive,” “would,”
“approximate,” and similar words are intended to identify
forward-looking statements. Statements may be forward looking even
in the absence of these particular words.
Examples of forward-looking statements include, but are not
limited to, the expectations of plans, business strategies,
objectives and growth and anticipated financial and operational
performance, including guidance regarding our strategy to develop
reserves, drilling plans and programs (including the number of rigs
and frac crews to be used), estimated reserves and inventory
duration, projected production and sales volume and growth rates,
projected commodity prices, basis and average differential, impact
of commodity prices on our business, projected average well costs,
generation of free cash flow, our return of capital strategy,
including the amount and timing of any redemptions, repayments or
repurchases of our common stock, outstanding debt securities or
other debt instruments, leverage targets, our ability to maintain
or improve our credit ratings, leverage levels and financial
profile, our hedging strategy, our environmental, social and
governance (ESG) initiatives and our ability to achieve anticipated
results of such initiatives, expected benefits from acquisitions,
potential acquisitions and strategic transactions, the timing
thereof and our ability to achieve the intended operational,
financial and strategic benefits of any such transactions or other
initiatives and statements regarding the proposed transaction
between Southwestern Energy and Chesapeake, the expected closing of
the proposed transaction and the timing thereof and as adjusted
descriptions of the post-transaction company and its operations,
strategies and plans, integration, debt levels and leverage ratio,
capital expenditures, cash flows and anticipated uses thereof,
synergies, opportunities and anticipated future performance,
including an expected accretion to earnings and free cash flow and
dividend payments. These forward-looking statements are based on
management’s current beliefs, based on currently available
information, as to the outcome and timing of future events. All
forward-looking statements speak only as of the date of this news
release. The estimates and assumptions upon which forward-looking
statements are based are inherently uncertain and involve a number
of risks that are beyond our control. Although we believe the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance, and we cannot assure you that such statements
will be realized or that the events and circumstances they describe
will occur. Therefore, you should not place undue reliance on any
of the forward-looking statements contained herein.
Factors that could cause our actual results to differ materially
from those indicated in any forward-looking statement are subject
to all of the risks and uncertainties incident to the exploration
for and the development, production, gathering and sale of natural
gas, NGLs and oil, most of which are difficult to predict and many
of which are beyond our control, as well as all of the risks and
uncertainties associated with the proposed transaction between the
Company and Chesapeake. These risks include, but are not limited
to, commodity price volatility, inflation, the costs and results of
drilling and operations, lack of availability of drilling and
production equipment and services, the ability to add proved
reserves in the future, environmental risks, drilling and other
operating risks, legislative and regulatory changes, the
uncertainty inherent in estimating natural gas and oil reserves and
in projecting future rates of production, the quality of technical
data, cash flow and access to capital, the timing of development
expenditures, a change in our credit rating, an increase in
interest rates, our ability to increase commitments under our
revolving credit facility, our hedging and other financial
contracts, our ability to maintain leases that may expire if
production is not established or profitably maintained, our ability
to transport our production to the most favorable markets or at
all, any increase in severance or similar taxes, the impact of the
adverse outcome of any material litigation against us or judicial
decisions that affect us or our industry generally, the effects of
weather or power outages, increased competition, the financial
impact of accounting regulations and critical accounting policies,
the comparative cost of alternative fuels, credit risk relating to
the risk of loss as a result of non-performance by our
counterparties, including as a result of financial or banking
failures, impacts of world health events, cybersecurity risks,
geopolitical and business conditions in key regions of the world,
our ability to realize the expected benefits from acquisitions,
divestitures, and strategic transactions, our ability to achieve
our GHG emission reduction goals and the costs associated
therewith, the risk that the Company’s and Chesapeake’s businesses
will not be integrated successfully, the risk that cost savings,
synergies and growth from the proposed transaction may not be fully
realized or may take longer to realize than expected, the risk that
the credit ratings of the combined company or its subsidiaries may
be different from what the companies expect, the risk that a
condition to closing of the proposed transaction may not be
satisfied, that either party may terminate the Merger Agreement or
that the closing of the proposed transaction might be delayed or
not occur at all, potential adverse reactions or changes to
business or employee relationships, including those resulting from
the announcement or completion of the proposed transaction, the
risk the parties do not receive regulatory approval of the proposed
transaction, the occurrence of any other event, change or other
circumstances that could give rise to the termination of the Merger
Agreement, the risk that changes in Chesapeake’s capital structure
and governance could have adverse effects on the market value of
its securities, the ability of the Company and Chesapeake to retain
customers and retain and hire key personnel and maintain
relationships with their suppliers and customers and on the
Company’s and Chesapeake’s operating results and business
generally, the risk the proposed transaction could distract
management from ongoing business operations or cause the Company
and/or Chesapeake to incur substantial costs, the risk of any
litigation relating to the proposed transaction, the risk that
Chesapeake may be unable to reduce expenses or access financing or
liquidity, and any other factors described or referenced under Item
7. “Management's Discussion and Analysis of Financial Condition and
Results of Operations” and under Item 1A. “Risk Factors” of our
Annual Report on Form 10-K for the year ended December 31,
2023.
We have no obligation and make no undertaking to publicly update
or revise any forward-looking statements, except as required by
applicable law. All written and oral forward-looking statements
attributable to us are expressly qualified in their entirety by
this cautionary statement.
Important Additional Information Regarding the Transaction
Has Been Filed with the SEC and Where to Find It
In connection with the proposed transaction between Southwestern
and Chesapeake, Chesapeake filed a Registration Statement on Form
S-4 (the “Registration Statement”) with the SEC that also
constitutes a prospectus of Chesapeake common stock. The
Registration Statement was declared effective on May 17, 2024, at
which time Chesapeake filed a final prospectus and Southwestern
filed a definitive proxy statement. Chesapeake and Southwestern
commenced mailing of the definitive joint proxy
statement/prospectus (the “joint proxy statement/prospectus”) to
their respective shareholders on or about May 17, 2024. Each party
may also file other relevant documents regarding the proposed
transaction with the SEC. This communication is not a substitute
for the joint proxy statement/prospectus or for any other document
that Southwestern or Chesapeake has filed or may file in the future
with the SEC in connection with the proposed transaction. INVESTORS
AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT,
THE JOINT PROXY STATEMENT/PROSPECTUS, AS EACH MAY BE AMENDED OR
SUPPLEMENTED FROM TIME TO TIME, AND OTHER RELEVANT DOCUMENTS FILED
BY SOUTHWESTERN AND CHESAPEAKE WITH THE SEC BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION ABOUT SOUTHWESTERN AND CHESAPEAKE,
THE PROPOSED TRANSACTION, THE RISKS RELATED THERETO AND RELATED
MATTERS.
Investors will be able to obtain free copies of the joint proxy
statement/prospectus, as each may be amended from time to time, and
other relevant documents filed by Southwestern and Chesapeake with
the SEC through the website maintained by the SEC at
http://www.sec.gov. Copies of documents filed with the SEC by
Southwestern, including the joint proxy statement/prospectus, will
be available free of charge from Southwestern’s website at
www.swn.com under the “Investors” tab. Copies of documents filed
with the SEC by Chesapeake, including the joint proxy
statement/prospectus, will be available free of charge from
Chesapeake’s website at https://investors.chk.com/.
No Offer or Solicitation This communication is not
intended to and shall not constitute an offer to sell or the
solicitation of an offer to sell or the solicitation of an offer to
buy any securities or a solicitation of any vote or approval, nor
shall there be any sale of securities in any jurisdiction in which
such offer, solicitation, or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction. No offer of securities shall be made except by means
of a prospectus meeting the requirements of Section 10 of the
Securities Act.
SOUTHWESTERN ENERGY COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
For the three months ended
For the six months ended
June 30,
June 30,
(in millions, except share/per share
amounts)
2024
2023
2024
2023
Operating Revenues:
Gas sales
$
411
$
551
$
995
$
1,696
Oil sales
90
92
172
187
NGL sales
158
153
332
354
Marketing
424
475
1,003
1,154
Other
—
(2
)
(2
)
(4
)
1,083
1,269
2,500
3,387
Operating Costs and Expenses:
Marketing purchases
433
481
1,021
1,148
Operating expenses
403
418
820
836
General and administrative expenses
45
41
101
87
Merger-related expenses
10
—
19
—
Depreciation, depletion and
amortization
226
328
488
641
Impairments
631
—
2,724
—
Taxes, other than income taxes
44
58
93
126
1,792
1,326
5,266
2,838
Operating Income (Loss)
(709
)
(57
)
(2,766
)
549
Interest Expense:
Interest on debt
61
60
120
123
Other interest charges
2
3
5
6
Interest capitalized
(26
)
(29
)
(53
)
(59
)
37
34
72
70
Gain (Loss) on Derivatives
(35
)
317
91
1,718
Loss on Early Extinguishment of
Debt
—
—
—
(19
)
Other Loss, Net
(3
)
—
(2
)
(1
)
Income (Loss) Before Income
Taxes
(784
)
226
(2,749
)
2,177
Provision (Benefit) for Income
Taxes:
Current
—
—
—
—
Deferred
(176
)
(5
)
(606
)
7
(176
)
(5
)
(606
)
7
Net Income (Loss)
$
(608
)
$
231
$
(2,143
)
$
2,170
Earnings (Loss) Per Common
Share:
Basic
$
(0.55
)
$
0.21
$
(1.94
)
$
1.97
Diluted
$
(0.55
)
$
0.21
$
(1.94
)
$
1.97
Weighted Average Common Shares
Outstanding:
Basic
1,102,737,261
1,101,167,082
1,102,281,059
1,100,725,127
Diluted
1,102,737,261
1,102,724,782
1,102,281,059
1,102,487,313
SOUTHWESTERN ENERGY COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30,
2024
December 31,
2023
ASSETS
(in millions)
Current assets:
Cash and cash equivalents
$
15
$
21
Accounts receivable, net
544
680
Derivative assets
363
614
Other current assets
89
100
Total current assets
1,011
1,415
Natural gas and oil properties, using the
full cost method
38,737
37,772
Other
578
566
Less: Accumulated depreciation, depletion
and amortization
(31,645
)
(28,425
)
Total property and equipment, net
7,670
9,913
Operating lease assets
136
154
Long-term derivative assets
80
175
Deferred tax assets
849
238
Other long-term assets
104
96
Total long-term assets
1,169
663
TOTAL ASSETS
$
9,850
$
11,991
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt
$
389
$
—
Accounts payable
1,170
1,384
Taxes payable
125
128
Interest payable
77
77
Derivative liabilities
89
79
Current operating lease liabilities
42
44
Other current liabilities
30
17
Total current liabilities
1,922
1,729
Long-term debt
3,784
3,947
Long-term operating lease liabilities
93
107
Long-term derivative liabilities
59
100
Other long-term liabilities
227
220
Total long-term liabilities
4,163
4,374
Commitments and contingencies
Equity:
Common stock, $0.01 par value;
2,500,000,000 shares authorized; issued 1,164,596,399 shares as of
June 30, 2024 and 1,163,077,745 shares as of December 31, 2023
12
12
Additional paid-in capital
7,206
7,188
Accumulated deficit
(3,125
)
(982
)
Accumulated other comprehensive loss
(1
)
(3
)
Common stock in treasury, 61,614,693
shares as of June 30, 2024 and December 31, 2023
(327
)
(327
)
Total equity
3,765
5,888
TOTAL LIABILITIES AND EQUITY
$
9,850
$
11,991
SOUTHWESTERN ENERGY COMPANY
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS
(Unaudited)
For the six months ended
June 30,
(in millions)
2024
2023
Cash Flows From Operating
Activities:
Net income (loss)
$
(2,143
)
$
2,170
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation, depletion and
amortization
488
641
Amortization of debt issuance costs
4
4
Impairments
2,724
—
Deferred income taxes
(606
)
7
(Gain) loss on derivatives, unsettled
315
(1,631
)
Stock-based compensation
12
5
Loss on early extinguishment of debt
—
19
Other
4
2
Change in assets and liabilities:
Accounts receivable
136
803
Accounts payable
(139
)
(363
)
Taxes payable
(3
)
(20
)
Interest payable
—
(5
)
Inventories
(1
)
(25
)
Other assets and liabilities
(4
)
(45
)
Net cash provided by operating
activities
787
1,562
Cash Flows From Investing
Activities:
Capital investments
(980
)
(1,286
)
Proceeds from sale of property and
equipment
4
123
Net cash used in investing activities
(976
)
(1,163
)
Cash Flows From Financing
Activities:
Payments on long-term debt
—
(437
)
Payments on revolving credit facility
(1,513
)
(1,946
)
Borrowings under revolving credit
facility
1,738
2,006
Change in bank drafts outstanding
(37
)
(43
)
Cash paid for tax withholding
(5
)
(4
)
Net cash provided by (used in) financing
activities
183
(424
)
Decrease in cash and cash equivalents
(6
)
(25
)
Cash and cash equivalents at beginning of
year
21
50
Cash and cash equivalents at end of
period
$
15
$
25
Hedging Summary A detailed breakdown of derivative
financial instruments and financial basis positions as of June 30,
2024, including the remainder of 2024 and excluding those positions
that settled in the first and second quarters, is shown below.
Please refer to the Company’s quarterly report on Form 10-Q to be
filed with the Securities and Exchange Commission for complete
information on the Company’s commodity, basis and interest rate
protection.
Weighted Average Price per
MMBtu
Volume (Bcf)
Swaps
Sold Puts
Purchased
Puts
Sold Calls
Natural gas
2024
Fixed price swaps
267
$
3.60
$
—
$
—
$
—
Two-way costless collars
22
—
—
3.07
3.53
Three-way costless collars
42
—
2.50
3.25
4.24
Total
331
2025
Fixed price swaps
110
$
3.58
$
—
$
—
$
—
Two-way costless collars
73
—
—
3.50
5.40
Three-way costless collars
161
—
2.59
3.66
5.88
Total
344
Call Options – Natural Gas
(Net)
Volume
Weighted Average
Strike Price
(Bcf)
($/MMBtu)
2024
37
$
6.00
2025
73
7.00
2026
73
7.00
Total
183
Natural gas financial basis
positions
Volume
Basis Differential
(Bcf)
($/MMBtu)
2024
Dominion South
23
$
(0.71
)
TCO
18
(0.74
)
TETCO M3
19
(0.70
)
Total
60
$
(0.71
)
2025
Dominion South
9
$
(0.64
)
Weighted Average Price per
Bbl
Volume (MBbls)
Swaps
Sold Puts
Purchased Puts
Sold Calls
Oil
2024
Fixed price swaps
580
$
71.50
$
—
$
—
$
—
Two-way costless collars
184
—
—
70.00
88.56
Three-way costless collars
534
—
56.72
66.72
88.26
Total
1,298
2025
Fixed price swaps
41
$
77.66
$
—
$
—
$
—
Three-way costless collars
1,324
—
58.96
68.96
92.73
Total
1,365
2026
Three-way costless collars
225
$
—
$
60.00
$
70.00
$
83.32
Ethane
2024
Fixed price swaps
4,085
$
9.77
$
—
$
—
$
—
2025
Fixed price swaps
3,650
$
10.36
$
—
$
—
$
—
Propane
2024
Fixed price swaps
3,119
$
31.25
$
—
$
—
$
—
2025
Fixed price swaps
2,071
$
30.73
$
—
$
—
$
—
Normal Butane
2024
Fixed price swaps
718
$
39.42
$
—
$
—
$
—
2025
Fixed price swaps
548
$
35.28
$
—
$
—
$
—
Natural Gasoline
2024
Fixed price swaps
810
$
61.45
$
—
$
—
$
—
2025
Fixed price swaps
821
$
56.89
$
—
$
—
$
—
Explanation and Reconciliation of Non-GAAP
Financial Measures The Company reports its financial results
in accordance with accounting principles generally accepted in the
United States of America (“GAAP”). However, management believes
certain non-GAAP performance measures may provide financial
statement users with additional meaningful comparisons between
current results, the results of the Company’s peers and of prior
periods.
One such non-GAAP financial measure is net cash flow. Management
presents this measure because (i) it is accepted as an indicator of
an oil and gas exploration and production company’s ability to
internally fund exploration and development activities and to
service or incur additional debt, (ii) changes in operating assets
and liabilities relate to the timing of cash receipts and
disbursements which the Company may not control and (iii) changes
in operating assets and liabilities may not relate to the period in
which the operating activities occurred.
Additional non-GAAP financial measures the Company may present
from time to time are free cash flow, net debt, adjusted net
income, adjusted diluted earnings per share, adjusted EBITDA and
net debt to adjusted EBITDA, all of which exclude certain charges
or amounts. Management presents these measures because (i) they are
consistent with the manner in which the Company’s position and
performance are measured relative to the position and performance
of its peers, (ii) these measures are more comparable to earnings
estimates provided by securities analysts, and (iii) charges or
amounts excluded cannot be reasonably estimated and guidance
provided by the Company excludes information regarding these types
of items. These adjusted amounts are not a measure of financial
performance under GAAP.
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Adjusted net income:
(in millions)
Net income (loss)
$
(608
)
$
231
$
(2,143
)
$
2,170
Add back (deduct):
Merger-related expenses
10
—
19
—
Impairments
631
—
2,724
—
(Gain) loss on unsettled derivatives
(1)
285
(107
)
315
(1,631
)
Loss on early extinguishment of debt
—
—
—
19
Other (2)
3
4
5
7
Adjustments due to discrete tax items
(3)
—
(57
)
9
(494
)
Tax impact on adjustments
(208
)
24
(685
)
370
Adjusted net income
$
113
$
95
$
244
$
441
(1)
Includes $1 million and $2 million of
non-performance risk adjustment to derivative activities for the
three and six months ended June 30, 2024, and ($4) million of
non-performance risk adjustment to derivative activities for the
six months ended June 30, 2023, respectively.
(2)
Includes $1 million and $2 million of
development costs for our enterprise resource technology for the
three and six months ended June 30, 2024, respectively, and $4
million and $5 million of development costs for our enterprise
resource technology for the three and six months ended June 30,
2023, respectively.
(3)
The Company’s 2024 income tax rate is
22.4%.
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Adjusted diluted earnings per
share:
Diluted earnings (loss) per share
$
(0.55
)
$
0.21
$
(1.94
)
$
1.97
Add back (deduct):
Merger-related expenses
0.01
—
0.02
—
Impairments
0.57
—
2.46
—
(Gain) loss on unsettled derivatives
(1)
0.26
(0.10
)
0.29
(1.48
)
Loss on early extinguishment of debt
—
—
—
0.02
Other (2)
0.00
0.00
0.00
0.00
Adjustments due to discrete tax items
(3)
—
(0.05
)
0.01
(0.45
)
Tax impact on adjustments
(0.19
)
0.03
(0.62
)
0.34
Adjusted diluted earnings per share
$
0.10
$
0.09
$
0.22
$
0.40
(1)
Includes $1 million and $2 million of
non-performance risk adjustment to derivative activities for the
three and six months ended June 30, 2024, and ($4) million of
non-performance risk adjustment to derivative activities for the
six months ended June 30, 2023, respectively.
(2)
Includes $1 million and $2 million of
development costs for our enterprise resource technology for the
three and six months ended June 30, 2024, respectively, and $4
million and $5 million of development costs for our enterprise
resource technology for the three and six months ended June 30,
2023, respectively.
(3)
The Company’s 2024 income tax rate is
22.4%.
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Net cash flow:
(in millions)
Net cash provided by operating
activities
$
291
$
425
$
787
$
1,562
Add back (deduct):
Changes in operating assets and
liabilities
77
28
11
(345
)
Merger-related expenses
10
—
19
—
Net cash flow
$
378
$
453
$
817
$
1,217
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Free cash flow (deficit):
(in millions)
Net cash flow
$
378
$
453
$
817
$
1,217
Subtract:
Total capital investments
(430
)
(595
)
(968
)
(1,260
)
Free cash flow (deficit)
$
(52
)
$
(142
)
$
(151
)
$
(43
)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Adjusted EBITDA:
(in millions)
Net income (loss)
$
(608
)
$
231
$
(2,143
)
$
2,170
Add back (deduct):
Interest expense
37
34
72
70
Income tax expense (benefit)
(176
)
(5
)
(606
)
7
Depreciation, depletion and
amortization
226
328
488
641
Merger-related expenses
10
—
19
—
Impairments
631
—
2,724
—
(Gain) loss on unsettled derivatives
(1)
285
(107
)
315
(1,631
)
Loss on early extinguishment of debt
—
—
—
19
Other
3
(1
)
4
2
Stock-based compensation expense
5
4
12
5
Adjusted EBITDA
$
413
$
484
$
885
$
1,283
(1)
Includes $1 million and $2 million of
non-performance risk adjustment to derivative activities for the
three and six months ended June 30, 2024, and ($4) million of
non-performance risk adjustment to derivative activities for the
six months ended June 30, 2023, respectively.
12 Months Ended
June 30, 2024
Adjusted EBITDA:
(in millions)
Net income
$
(2,756
)
Add back (deduct):
Interest expense
144
Income tax expense
(870
)
Depreciation, depletion and
amortization
1,154
Merger-related expenses
19
Impairments
4,434
Gain on unsettled derivatives (1)
(142
)
Stock-based compensation expense
16
Other
10
Adjusted EBITDA
$
2,009
(1)
Includes $1 million of non-performance
risk adjustment for the twelve months ended June 30, 2024.
June 30, 2024
Net debt:
(in millions)
Total debt (1)
$
4,188
Subtract:
Cash and cash equivalents
(15
)
Net debt
$
4,173
(1)
Does not include $15 million of
unamortized debt premium/discount and issuance expense.
June 30, 2024
Net debt to Adjusted EBITDA:
(in millions)
Net debt
$
4,173
Adjusted EBITDA
$
2,009
Net debt to Adjusted EBITDA
2.1x
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240801975043/en/
Investor Contact Brittany Raiford Vice President,
Investor Relations (832) 796-7906 brittany_raiford@swn.com
Southwestern Energy (NYSE:SWN)
Gráfica de Acción Histórica
De Jul 2024 a Ago 2024
Southwestern Energy (NYSE:SWN)
Gráfica de Acción Histórica
De Ago 2023 a Ago 2024
